Central government employees and pensioners have received a major financial update as the Union Cabinet has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR). With this revision, the DA rate has increased from 60% to 63% of basic pay, providing additional financial support to millions of beneficiaries.
DA Increased from 60% to 63%
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the additional DA instalment on October 28, 2026.
The increase follows the established formula based on the recommendations of the 7th Central Pay Commission. It is intended to help employees manage the impact of rising prices and inflation.
More Than 48 Lakh Employees to Benefit
According to the government announcement, approximately 48.54 lakh central government employees will benefit from the latest revision. Around 68.71 lakh pensioners will also receive the corresponding increase in Dearness Relief.
The combined annual financial impact of the DA and DR revision on the government exchequer is estimated at ₹10,016.10 crore.
How Much Will Employees Receive?
The actual increase in monthly DA will depend on an employee’s basic salary. Since the allowance is calculated as a percentage of basic pay, employees with higher basic salaries will receive a larger increase in rupee terms.
For example, an employee with a basic salary of ₹30,000 will receive ₹900 more per month following the 3-percentage-point increase.
| Basic Salary | Monthly DA Increase |
|---|---|
| ₹18,000 | ₹540 |
| ₹25,000 | ₹750 |
| ₹30,000 | ₹900 |
| ₹40,000 | ₹1,200 |
| ₹50,000 | ₹1,500 |
What Happens Next?
With the revised DA rate now at 63%, employees will be watching the next inflation figures and the government’s future announcements for the next revision.
The latest increase is an important development for central government employees and pensioners, particularly as they continue to await further changes under the 8th Pay Commission.
